S&P lifts PrivatBank

S&P said it raised the long-term counterparty credit ratings on PrivatBank to CCC+ from SD (selective default), along with its short-term counterparty credit ratings to C from SD.

The outlook is stable.

The upgrades reflect an understanding that PrivatBank has been servicing its obligations in full and on time since late December 2016, when it was nationalized and the holders of its three loan participation notes and related-party depositors were bailed in, S&P said.

The agency said it does not expect the bailed-in LPN holders and depositors to file for PrivatBank's bankruptcy in Ukraine, given that it has been nationalized.

The issues PrivatBank defaulted on were not rated by S&P, the agency added.

S&P said it believes that PrivatBank's creditworthiness remains vulnerable despite its nationalization, and that the bank depends on favorable business, financial and economic conditions to meet its financial commitments.

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